How Can Business Lead the Way on Combating Climate Change?

The overwhelming consensus among scientists is that the current levels of rapidly rising CO2 levels in the earth’s atmosphere are directly responsible for the planet’s current rapid warming. The rapid warming has triggered increasingly erratic short-term weather events as well as disturbing long-term climate trends, such as the breakdown of prevailing ocean currents which serve to stabilize climate patterns in various parts of the world. Although governments around the world have echoed scientists’ concerns and advocated urgent action about controlling CO2 emissions, the current level of global CO2 continues to rise, with no end in sight.

The business community plays a role in impacting CO2 levels through its activities, and in working with government and the public to help control those levels. However, despite growing appeals for urgency, governments have not moved rapidly enough considering the urgency of the problem. The reality is, governments by their very nature often have difficulty in acting urgently. So, the question is now posed: Should the business community — rather than merely offering to cooperate with governments in the fight against climate change, instead lead the way?  After all, businesses are accustomed to adapting to rapidly-changing market conditions to sustain their profitability; could they not now play a lead role in showing governments and the public in how to rapidly confront a crisis? As such, the business community can vividly demonstrate its commitment to multiple causes: combating climate change, demonstrating public responsibility, and ensuring the continuing sustainability of the planet and the communities they are a part of.

The dimensions of the problem.

The level of carbon dioxide in the earth’s atmosphere has a direct impact on climactic conditions. This has been demonstrated by the study of historic climate and CO2 conditions going back millions of years. Earth’s CO2 levels have always risen and fallen depending on other factors, such as active volcanic activity. Historically, those shifts have occurred over extended periods of time. In contrast, our current rising CO2 levels have been experienced during the rise of the industrial age, beginning about 300 years ago. In 1750, the earth’s CO2 level was 280 parts per million (ppm). Today, the earth’s CO2 level is 426 ppm and rising rapidly – a 50% increase in three hundred years! In geologic terms, that is unprecedented. The difference-maker has been the amount of CO2 emissions that the human race has been emitting into the atmosphere through the burning of coal and other fossil fuels.

What is the potential impact of this trend? We are seeing it in terms of extreme weather conditions and rapidly changing climatic patterns, along with extreme changes in animal behavior. No one knows for sure how much worse these effects could be, but here is one sobering fact: The last time the earth’s CO2 level was near the current number was three million years ago in the Pliocene epoch. Not only was the earth much, much warmer, but enough ice had melted so that earth’s oceans were at least one hundred feet higher than they are now!

Clearly, Climate change represents one of the most pressing challenges of our time. While governments play a crucial role in policy-making and regulation, the private sector possesses unique capabilities that can significantly contribute to mitigating climate change. Businesses, large and small, can lead the charge through innovation, investment, and corporate responsibility. Here are various ways businesses can spearhead efforts to combat climate change and foster a sustainable future.

1. Embracing Renewable Energy

Transitioning to renewable energy is one of the most effective strategies businesses can adopt to reduce their carbon footprint. Companies like Google and Microsoft have set ambitious goals to run their operations on 100% renewable energy. By investing in solar, wind, and other sustainable energy sources, businesses can not only lower their greenhouse gas emissions but also stabilize their energy costs over the long term.

Action Steps:

• Conduct Energy Audits: Assess current energy usage and identify areas for improvement.
• Invest in Renewable Projects: Consider purchasing renewable energy credits (RECs) or investing directly in solar panels or wind farms.
• Engage in Power Purchase Agreements (PPAs): Lock in long-term energy pricing while supporting renewable energy projects.

2. Promoting Sustainable Practices

Sustainability can permeate every aspect of a business, from supply chain management to product design. Companies can adopt sustainable practices that minimize waste, conserve resources, and reduce emissions.

Action Steps:

• Implement Circular Economy Principles: Design products for longevity, reuse, and recyclability. Companies like Patagonia exemplify this approach by encouraging customers to repair and recycle their gear.
• Reduce Packaging Waste: Opt for minimal and biodegradable packaging solutions.
• Source Sustainable Materials: Prioritize suppliers who adhere to environmental standards and practices.

3. Innovating Green Technologies

Innovation is a cornerstone of combating climate change. Businesses can invest in research and development to create new technologies that reduce emissions and promote sustainability.

Action Steps:

• Invest in Clean Tech: Develop or invest in technologies that capture carbon emissions, enhance energy efficiency, or utilize alternative materials.
• Partner with Startups: Collaborate with emerging companies focused on sustainability to accelerate the development of new solutions.
• Encourage Employee Innovation: Create platforms or challenges for employees to propose and develop sustainability initiatives within the company.

4. Advocating for Policy Change

Businesses have a powerful voice in the political arena and can advocate for climate-friendly policies. Engaging in public discourse and lobbying for legislation can lead to meaningful change at a national or global level.

Action Steps:

• Join Business Coalitions: Collaborate with other companies to amplify collective voices on climate issues. Initiatives like the We Mean Business Coalition are examples of this collective action.
• Engage in Corporate Advocacy: Support policies that promote renewable energy, carbon pricing, and other measures that combat climate change.
• Communicate Transparently: Publicly share climate commitments and progress to build trust and encourage others to follow suit.

5. Implementing Carbon Neutral Goals

Setting carbon neutrality goals is a concrete way for businesses to demonstrate their commitment to combating climate change. Companies like Unilever and Ikea have set ambitious targets to achieve net-zero emissions by 2039 and 2030, respectively.

Action Steps:

• Set Measurable Goals: Establish clear, science-based targets for reducing emissions and track progress regularly.
• Offset Remaining Emissions: Invest in carbon offset projects, such as reforestation or renewable energy initiatives, to counterbalance unavoidable emissions.
• Engage Stakeholders: Involve employees, customers, and suppliers in sustainability initiatives to foster a culture of climate responsibility.

6. Educating and Engaging Employees

A company’s internal culture plays a vital role in its sustainability efforts. Educating employees about climate change and sustainability practices can lead to innovative ideas and commitment from the ground up.

Action Steps:

• Provide Training Programs: Offer workshops and resources to educate employees about sustainability and climate change.
• Encourage Volunteerism: Organize community service events focused on environmental initiatives, such as tree planting or clean-up drives.
• Foster a Sustainable Workplace: Promote practices like telecommuting, carpooling, and using energy-efficient office equipment.

7. Leveraging Supply Chains for Sustainability

Supply chains are often a significant source of a company’s emissions. By working with suppliers to improve their sustainability practices, businesses can make a broader impact on climate change.

Action Steps:

• Evaluate Supplier Practices: Assess the sustainability of suppliers and prioritize those that adhere to environmental standards.
• Collaborate on Sustainability Initiatives: Work with suppliers to develop greener production processes and materials.
• Set Supplier Expectations: Include sustainability criteria in contracts and procurement processes.

8. Building Resilience Through Climate Adaptation

Climate change is already impacting businesses through extreme weather events, resource scarcity, and shifting market demands. Companies can lead by adopting strategies that build resilience against these changes.

Action Steps:

• Conduct Climate Risk Assessments: Identify vulnerabilities within operations and supply chains.
• Invest in Infrastructure: Upgrade facilities to withstand climate impacts, such as flooding or heatwaves.
• Develop Contingency Plans: Create strategies for responding to climate-related disruptions, ensuring business continuity.

9. Collaborating with NGOs and Local Communities

Partnerships with non-governmental organizations (NGOs) and local communities can enhance a company’s climate efforts. These collaborations can lead to impactful projects and improve community resilience.

Action Steps:

• Engage in Community Projects: Support local initiatives that promote sustainability and environmental awareness.
• Partner with NGOs: Collaborate on programs that align with corporate sustainability goals, such as wildlife conservation or pollution reduction efforts.
• Share Resources: Offer expertise, funding, or materials to support community-driven climate initiatives.

10. Measuring and Reporting Impact

To effectively combat climate change, businesses must measure and report their environmental impact. Transparency not only builds trust but also holds companies accountable for their commitments.

Action Steps:

• Adopt Reporting Frameworks: Utilize standards like the Global Reporting Initiative (GRI) or the Carbon Disclosure Project (CDP) to measure and disclose environmental performance.
• Set Key Performance Indicators (KPIs): Track progress toward sustainability goals using quantifiable metrics.
• Engage Stakeholders in Reporting: Share findings with employees, investors, and the public to promote transparency and accountability.

Conclusion

Businesses have a crucial role to play in the fight against climate change. By embracing renewable energy, promoting sustainable practices, innovating green technologies, advocating for policy changes, and engaging employees and communities, companies can lead the way toward a more sustainable future. The time for action is now; the private sector’s commitment can drive significant progress in mitigating climate change, creating a healthier planet for future generations. Through collaboration, innovation, and accountability, businesses can not only protect the environment but also foster economic resilience and growth.

Sustainability Core Advisors, Fractional Sustainability Consultants, is a firm whose very purpose is to help other businesses achieve goals such as developing strategies for sustainability and fighting climate change.  We firmly believe that private business can lead the way in efforts to keep our planet healthy.